L’Oréal first quarter sales show a big jump, contrasted by slower areas
But the results also showed strong contrasts, with the Consumer Products division showing slower growth, at 2.6%, while the Western European market grew at only 0.4% and Latin America posted growth of 0.2%.
Group sales came in at Euros 6.78 billion for quarter ending in March, but because of a big hit of 8.4% from currency fluctuations, the figure was only up by 1.0% in reported terms.
Highlights contrast with slower aspects
“All the Divisions are growing. L'Oréal Luxe has delivered an impressive performance by accelerating its growth, thanks to the power of its four major global brands - Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl's - all posting growth of more than 10%,” said L'Oréal CEO Jean-Paul Agon.
“The Active Cosmetics Division, with double-digit growth, is driven by the success of its La Roche-Posay and SkinCeuticals brands, the new impetus of Vichy and the dynamism of CeraVe.”
However, Agon also pointed out the significant contrast in the performance of different areas of the business, highlighting how the Consumer Products division had performed very well in markets like China, while in its domestic market of France, the conditions were described as “still difficult”.
Digital is set for future growth
The company is also making a concerted effort to grow its digital arm of the business, a fact that it said was emphasized by the acquisition of Canada-based company, ModiFace, which will now provide its innovative technology to enhance services and experience across the L'Oréal brand portfolio.
In line with this investment, the company noted that its e-commerce sales grew at a rate of +33.8% during the quarter, which means that the sales figure for the division now accounts for 8.8% of total sales.
The company announced the acquisition of ModiFace March 16th of this year, while on March 22nd it signed an agreement with Giorgio Armani to ensure that its licensing agreement would remain in place until Marcy 2050.